Weekly Real Estate Update: Holiday Shopping, Consumer Confidence, and Housing Insights
As we start December, the economy and housing market bring mixed but mostly positive news. The holiday shopping season is off to a strong start, consumer confidence is on the rise, and mortgage rates have begun to stabilize. However, challenges in new home sales remind us that the market’s recovery remains uneven.
Conforming Loan Limits Raised for 2025
The Federal Housing Financing Agency (FHFA) has increased conforming loan limits for 2025 to reflect rising home prices.
- Baseline limit: Up 5.2% to $806,500.
- High-cost areas: Increased to $1,209,750.
This change benefits California buyers, particularly in high-cost regions, by providing access to lower interest rates on conforming loans as home prices are expected to rise modestly in 2025.
Black Friday Spending Reflects Consumer Optimism
Holiday shopping kicked off with a 3.4% year-over-year increase in retail sales on Black Friday, driven by:
- In-store sales: Up 0.7%.
- E-commerce growth: A robust 14.6%.
With consumer confidence climbing and “Buy Now, Pay Later” options gaining popularity, spending for the holiday season (November 1–December 24) is projected to grow 3.2% year-over-year.
Mortgage Rates Stabilize After Peak
After spiking earlier this fall, mortgage rates have begun to recover.
- 30-year fixed rate average: 6.91% as of December 2, near a one-month low.
- Impact: Purchase applications rose 12% last week, signaling renewed buyer interest.
While refinancing remains slow, stabilizing rates could provide a much-needed boost to the housing market.
Consumer Confidence Hits 16-Month High
The Conference Board reports increased optimism among consumers, with the confidence index reaching its highest level since July 2023. Factors driving this rise include:
- Optimism about the labor market and stock prices.
- Expectations of lower inflation.
Although recession fears have eased, home purchase intentions remain unchanged for the short term.
New Home Sales See Decline
New single-family home sales fell 17.3% in October to their lowest level since November 2022, driven by:
- Hurricanes in the South: Sales in the region dropped sharply.
- Higher mortgage rates: Spiking rates between September and November likely weighed on demand.
On the bright side, builder confidence rose in November, with improved buyer traffic and sales projections suggesting potential recovery ahead.
As we approach the new year, the housing market shows resilience amid challenges. Stabilizing mortgage rates and rising consumer confidence provide reasons for optimism, but cautious buyers and fluctuating sales highlight the complexity of today’s market. Stay tuned for more updates to navigate these changes with confidence.
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4859 Autry Ave.
Long Beach 90808
3 Bed | 2 Bath | 1594 SF | $999,000
Charming 3-Bedroom, 2-Bath Lakewood Village Home on a Picturesque Tree-Lined Street! This beautifully maintained home blends classic appeal with modern upgrades. Step into a bright living and dining area with refinished original hardwood floors and a bay window. The spacious kitchen boasts ample storage, a custom breakfast bar, and opens to a formal dining and family room. The primary suite offers a peaceful retreat with an updated bathroom. Additional highlights include central heat and AC, dual-pane windows, bamboo flooring, and a detached 2-car garage. Conveniently located near parks, shopping, and dining, this home provides a comfortable and connected lifestyle.
OPEN HOUSE
Saturday (12/7) 12:00 - 3:00
Sunday (12/8) 12:00 - 3:00
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700 E Ocean Blvd #1706
Long Beach 90802
2 Bed | 2 Bath | 1080 SF | $899,900 **Just Reduced**
Experience luxury coastal living with breathtaking ocean views from every room in this beautifully remodeled high-rise condo at the iconic International Tower. This light-filled unit features an open floor plan, updated kitchen with sleek cabinets, marble countertops, and stainless steel appliances, and a spacious primary suite with a luxurious soaking tub. Enjoy panoramic vistas from the large wrap-around balcony, plus access to top-notch amenities, including a pool, fitness center, and 24-hour security, all just steps from the beach and vibrant local dining.
Eligible for a $20,000 down payment grant from City National Bank!
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223 Elm Ave.
Long Beach 90802
2 Bed | 3 Bath | 1570 SF | $825,000
Enjoy modern luxury living in this stunning 2019-built townhome at The Huxton in the East Village Arts District. This inviting home features an open-concept layout perfect for entertaining, with high ceilings, large windows, recessed lighting, and beautiful flooring throughout. The gourmet kitchen boasts quartz countertops, soft close cabinets, and upscale appliances by Bertazzoni and Bosch. Upstairs, two primary suites offer walk-in closets and luxurious bathrooms. Enjoy city views from the spacious rooftop deck – ideal for relaxing or BBQs. Eco-friendly features include owner-owned solar panels and a garage pre-planned for EV charging. Located in a secure, gated complex, you’ll be steps from the waterfront, dining, cafes, and nightlife. VA Approved.
Eligible for a $50,000 down payment grant from City National Bank!
OPEN HOUSE
Saturday (12/7) 12:00 - 3:00
Sunday (12/8) 12:00 - 3:00
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225 W 6th St #515
Long Beach 90802
1 Bed | 1 Bath | 547 SF | $339,000
Charming top-floor end unit condo in the heart of Long Beach, offering privacy and city views. This updated home features an open living area with a private balcony, a stylish kitchen with butcher block countertops, and a bright bedroom with two mirrored closets. Located near top attractions like the Long Beach Convention Center and Shoreline Village, with easy access to dining, shopping, and transportation.
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488 E Ocean Blvd #P9
Long Beach 90802
1 Bed + Bonus Room | 1.5 Bath | 1447 SF | $792,500
Experience Luxury Living with Breathtaking Panoramic Views in this Rare Two-Story Penthouse! AMAZING VIEWS!! Discover unparalleled luxury in this stunning 18th & 19th-floor penthouse in the prestigious Aqua high-rise building in downtown Long Beach.
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706 E Bixby Rd
Long Beach 90807
3 Bed | 2 Bath | 1417 SF | $1,080,000
Welcome to this beautiful California Heights home, featuring over $250,000 in recent updates that blend modern luxury with timeless charm. The spacious living room invites you in with an abundance of natural light, gleaming oak wood floors, a cozy fireplace, and elegant recessed lighting. The newly updated custom kitchen is a chef’s dream, boasting top-of-the-line Café and Miele appliances. Great open floor plan with formal dining room that opens to the living room and kitchen. Both bathrooms have been beautifully remodeled with quartz countertops, custom white oak vanities, stylish tile work, modern lighting, and the primary bath features a luxurious soaking tub for ultimate relaxation. Located just 1-2 blocks from award-winning Blue-Ribbon schools (Longfellow Elementary & Hughes Middle School), and within walking distance to the vibrant shopping, restaurants, and cafes in Bixby Knolls.
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3503 Marber Ave.
Long Beach 90808
3 Bed | 2 Bath | 1553 SF | $1,120,000
Impeccable South of Conant Home on a Beautiful Tree-Lined Street! This charming 3-bedroom, 2-bath home in a highly sought-after neighborhood exudes curb appeal with designer touches throughout.
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2101 E 2nd St #205
Long Beach 90803
2 Bed | 2 Bath | 1064 SF | $679,900
Enjoy the ocean breeze in this beautiful condo located just 2 blocks to the beach and across from Bixby Park. Walking distance to the beach, Retro Row, Broadway Ave, dog park, Farmer’s Market, and all the great local restaurants, cafes, and nightlife.
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6815 E Monlaco Rd
Long Beach 90815
3 Bed | 2 Bath | 1254 SF | $995,000
Welcome Home to Modern Elegance in the Heart of the Plaza Area, Long Beach! Nestled in the highly sought-after Plaza neighborhood, this newly updated 3-bedroom, 2-bathroom residence invites you to experience the perfect blend of contemporary comfort and classic charm. Step inside to discover a thoughtfully designed living space that seamlessly combines style and functionality.
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6713 E Almada St
Long Beach 90815
4 Bed | 3 Bath | 2136 SF | $1,174,900
Welcome to Your Dream Home in Los Altos! This stunning 4-bedroom, 3-bathroom, 2-story home is a rare find in the highly sought-after Los Altos community. Conveniently located near Belmont Shore, this home offers easy freeway access, making commuting a breeze. You'll be close to parks and highly rated schools, perfect for families and outdoor enthusiasts alike.
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